This story was originally published on MyNorthwest.com
The Sage Investment Group (SIG) has purchased the Studio 6 hotel in Mountlake Terrace, closing a $12.1 million sale on Friday.
The 41,000-square-foot property will be converted into an apartment building, one of the Kirkland-based investment group’s specialties.
Mountlake Terrace hotel to become 120 studio apartments
Sage plans to convert the current three-level, 119-room hotel into 120 studio apartment units by next year, according to The Puget Sound Business Journal.
The Studio 6 hotel, built in 1997, was formerly owned by PMF Investments and is located at 24035 Van Ry Blvd.
SIG has recently purchased motels in Fife and Tacoma. The group specializes in purchasing hospitality properties, which are then transformed into affordable apartment units.
Each studio apartment will have a full kitchen and bathroom. Other notable amenities within the building include a laundry facility, gym, community space, and a possibility of a dog park.
The monthly rent for the new apartment building is expected to be roughly $1,300, which includes utilities, cable, internet, and parking, according to PSBJ.
Co-founder Emily Hubbard told The Puget Sound Business Journal the property was a perfect opportunity for Sage to expand north, citing the need for housing. The location is ideal due to its short distance from a Sound Transit light rail station and a Grocery Outlet opening soon.
“For our tenants, the most expensive thing in their budget is their housing, and the second most expensive thing for them is transportation,” Hubbard said, according to the media outlet. “To be able to have mass transit and food readily available within walking distance for our tenants, I think, is fantastic.”
Hubbard mentioned the priority SIG had for affordability ahead of its opening in a high-priced suburb.
“[Mountlake Terrace] used to be a reasonable, well-priced suburb, and now gotten so expensive, and being able to offer a studio option for people that want to stay and live in the area and thrive in the area, but can’t afford either a single-family home or a townhouse … I’m thrilled to be a part of that,” Hubbard told The Puget Sound Business Journal.
SIG is preparing to break ground in the next six to eight months and expects the construction costs to be between $3.8 million and $4.5 million.
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